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JAKARTA, July 21 (Xinhua) -- A senior Indonesian official said on Thursday that coal production in the country decreased in the first half of this year on the back of faltering demand and price drop in international markets.
Citing data compiled by licensed coal producers in the country, Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources Gatot Ariyono said that total coal production in the first six months stood at 100.96 million tons, down 16.27 percent from 120.58 million tons recorded in the corresponding period of last year.
"Demands in both domestic and foreign markets were dropping. The price also affected production," Gatot said.
The reference price for coal stood at 51.81 U.S. dollars per ton as of June, 13.06 percent lower than 59.59 U.S. dollars per ton recorded in the same period last year, according to him.
He added that coal exports during the period stood at 79.98 million tons, down 19.79 percent from 99.72 million tons in the first half of 2015.
An uphill battle is expected for Indonesian coal producers in the second half of the year as the whole year target was initially set at 419 million tons, said Gatot, adding however that the Domestic Market Obligation scheme is expected to boost domestic coal consumption. Enditem
